The Gender Pay Gap
As the new law requiring UK companies to report the difference in what they pay their male and female employees rolls out, early reports are showing gender pay gaps as high as 65%.
The law requires firms of 250+ employees to calculate and publish the difference between average and median hourly rates for all male and female employees, across the UK.
According to new data published via the UK Government’s gender pay gap service, the financial service industry has been so far reported as having one of the largest differences in what male and female members of staff are being paid.
Across the UK, the median gender pay gap is currently 18.4% for all employees and 9.1% for those specifically in full-time employment. Financial Services currently has a gap of 24%.
This has shone a light on the issue – of the companies having reported so far – 85% of firms are currently paying women employees less than males.
A survey identified that of 1,000 managers thought;
- 80% thought reporting on a gender pay gap would hurt the reputation of their firm
- 75% predicted that firms may be at risk of losing members of their staff
- 73% thought companies with large pay differences may find it trickier to recruit in the future
However … 77% of those asked agreed the companies with large pay differences should be highlighted.
Source: gov.uk; Armstrong International analysis
To support this government movement, initiatives such as the 30% Club have been brought to light. The 30% Club launched a campaign in the UK in 2010, with the goal of achieving a minimum of 30% women on FTSE-100 boards. With help from this movement, the current figure has risen to 27.9% up from 12.5%.
The Women in Finance Charter also commit to growing the number of women in senior management roles to 40% by 2020. Their long-term goal to reach a 50:50 gender balance in higher ranking roles.
Despite this, not everyone is an agreement with the new law, many firms have argued against the regulations, as they believe that the numbers are unable to give a complete picture. CBI stated, “League tables should not be used to name and shame firms, as data will only be able to present a partial picture, particularly given factors such as the mix of part-time and full working and sectoral differences.”
The UK is not the only country highlighting the gender pay gap issue. Iceland began the New Year by introducing a new policy, in which firms must now pay women and men equally when performing the same job.
During 2018, Armstrong International will be producing a number of thought pieces covering a number of topics specifically related to challenges/ opportunities faced by senior HR & Talent professionals.
The first of these will be focused on understanding what best practice; executive search/ candidate experience should look like when implemented in a partnership between Client, Candidate and Search provider.
If you are a HR/ Talent professional and would like to participate in this study, we’d love to hear from you and arrange a time to speak, please contact Simon Philip-Smith firstname.lastname@example.org or 0207 606 0002
- At Armstrong International, we are constantly striving to not only achieve a fair working environment for our own staff but also for those across the entire financial services industry, as a reflection of this, we are proud and active participants in a number of related initiatives;
- Women in Investment Awards – headline sponsor of the inaugural Investment Week awards held in November 2017
- Return to Work services. The aim being to specifically support individuals who have taken an extended career break and wish to get back into the financial services industry
- Martin Armstrong, Founder of Armstrong International is a member of the aforementioned 30% Club. The club’s work so far has managed to effectively make a major impact on the number of women working within the industry. Ensuring the development of achieving a diverse pool of talent across the financial industry
- Armstrong International is honoured to have been a recipient of Bank of America Merrill Lynch’s ‘Diversity recruitment supplier’ of the year award